State hikes VAT, petrol price as it pre­pares for GST roll­out

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent ht­metro@hin­dus­tan­times.com

From elec­tronic goods and four-wheel­ers to petrol and spices, a num­ber of con­sumer durables and food prod­ucts are set to get costlier with the Bharatiya Janata Party (BJP)led gov­ern­ment ap­prov­ing a hike to value-added tax (VAT) for the sec­ond time this fis­cal, cit­ing ris­ing ex­penses on the state’s var­i­ous in­fra­struc­ture de­vel­op­ment schemes.

The state cabi­net on Fri­day de­cided to in­crease the price of petrol by Rs1.50 a litre and hiked VAT for two tax brack­ets by 0.5% and 1%, re­spec­tively. The price of diesel will, how­ever, re­main un­changed. The changes will be ef­fec­tive from Fri­day mid­night.

With this hike, goods that were ear­lier charged a VAT of 12.5%, will now be taxed at 13.5%. Sim­i­larly, goods that were taxed 5.5% will now be eval­u­ated at 6%. Ear­lier this year, the state gov­ern­ment, as part of its an­nual bud­get, had de­cided to up the tax rate for these goods to 5.5% from 5%.

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